Swiss Finance Week Green marketing and Corporate societal ... · 4. Sustainable Packaging – replacing your existing packaging with “green” packaging materials such as biodegradable

Marketing Management, Dita Danosa

Dita Danosa

Green marketing and Corporate societal marketing

Swiss Finance Week

How to promote green and social products and succeed in sales

BA School of Business and Finance


Green marketing history

The term Green Marketing grew in popularity in the late eighties and early nineties, as environmental issues became a growing concern and topic of conversation for many Americans and Europeans.

Companies started to thought of environmental issues as being an opportunity to increase the value of their products or services.


Green marketing history

However, as the issues became a regular feature of news coverage, consumers began looking for companies that took steps to reduce their impact on the planet. Increasingly, over the past twenty years, everyone from GE to McDonald have tried to include “green” in their marketing plan.


Green marketing historical problem

The problem however, is that there has been a lot of confusion over what it means to be “green” and too much focus on jumping on the green bandwagon instead of focusing on implementing real environmentally friendly measures. This has resulted in many companies touting themselves as “green” but not making clear what that means.


Green marketing historical problem

• If you do a search for “green marketing” on amazon.com you’ll find over 4,000 books to guide the way, but many business still fail to find the balance between real and merely superficial green efforts.


What is a green marketing?

We can define Green Marketing as communicating with your community about

the measures you have taken to reduce the negative impact of your services (or the alternative) on Earth’s

ecosystem.


Green marketing pie

The Green Marketing Manifesto, John Grant


The realms of influence represent a hierarchy of where marketing activities are applied. These include:

A) Public: Companies, Markets, Political and Cultural Values

B) Social: Identity, Group Affiliation, Meaning, and Branding

C) Personal: Products and Practical Benefits

Green marketing pie


Going from the outer to inner circles, we have progressive degrees of green contribution with an associated marketing objective:

A) Green: Set New Standards - Communicate B) Greener: Share Responsibility -

Collaborate C) Greenest: Support Innovation - Culture

Reshaped

Green marketing pie


Green marketing pie

• The idea is that as we go from light to dark green, we’re moving from having only commercial objectives to an increasing amount of environmental and social objectives.

• It’s going from basic compliance to proactive action to systemic innovation & transformation.


Consumers Buy Green, Despite Economy


8 green marketing ideas for business Have a look at how small to med-size businesses can make a commitment to environment and create a competitive advantage in their market place and to differentiate them from those of competitors.


1. Work from home – allow staff to work from home more often. This will help provide added perks and could improve productivity.

2. Teamwork – boost Company moral by setting a company wide goal of everyone working together to lower the businesses carbon footprint.

3. C02 friendly servers – yes, today, you can reverse the impact of your websites by switching to C02 friendly servers.

8 green marketing ideas for business


4. Sustainable Packaging – replacing your existing packaging with “green” packaging materials such as biodegradable. Or simply get creative by re-using old magazine pages.

5. Transportation – if your business relies on transportation, look at transitioning to environmental friendly vehicles. This bold move will most likely get the attention of your local or national newspapers.



6. Green Seal – assess the ‘Greenness’ of your products and apply for a green seal.

7. Get Your Brand out there – help your local community and customers reduce dependency on grocery store plastics. Invest in environmental friendly grocery bags with your brand, and give them away to customers for free…it’s free advertising!



8. Give Local Love. Receive Local Love – if you’re in the food business, look at ways to source local products even if they’re at slightly higher cost. In return, promote your goal of supporting local farmers and reducing your carbon footprint. You can start the transition slowly by having select products that feature seasonal and locally sourced produce.



Examples. MTV

• Challenge Switch is MTV Networks International’s

Global Climate Change Campaign. They area always looking for ways to get people involved in the global warming issue and drive them to the MTV Swich website without necessarily using expensive media.


Examples. MTV

• Action To make people aware of the rising sea

level because of global warming. We confronted them in an amusing way with a serious massage using a floating board in the Amsterdam canals.


Examples. MTV

• Reaction Because of the massive positive

feedback MTV is not only looking to extend the promotion to other Dutch cities, but also to air it on TV.


Examples. MTV


Examples. Volkswagen

• Volkswagen seems to be a step ahead of the competition by spreading the message about the company’s sustainable initiatives and not just best-in-class mpg.



What if our roofs collected water? With a factory roof the size of Monaco it would be silly not to. We get through 1.4 million cubic metres of collected rainwater a year. And just for extra brownie (greenie?) points, we recycle it up to seven times



Can a car ever be eco-friendly?

Well, our latest BlueMotion Polo is green enough to be tax exempt - in fact, it actually gives off less CO2 than any other car in its class. That's good, but we think we can still do better.


What is a corporate social responsibility?

Corporate Social Responsibility is about how organizations manage their business activities, taking into account the impact of their activities on overall

society: customers, suppliers, employees, shareholders, communities and the environment in all aspects of

their operations.


What is a corporate social responsibility?

• The European Commission defines CSR as: when companies decide to voluntarily contribute to a better society and a cleaner environment, by integrating social and environmental concerns in their business operations and interactions with stakeholders.


Corporate social responsibility

Legal behaviour

Ethical behaviour

Socially responsible behaviour


Corporate social responsibility concept

• Social responsibility is fundamentally a philosophy or a vision about the relationship of business and society.

• CSR concept shows that CSR is not a short term “action plan” of the company and should be deeply integrated into both strategic planning and everyday operations.


Benefits from CSR programs

1. Companies’ reputation improving. A company success depends on the

community, authorities, mass-media or partners’ trust.

A good reputation, obtained from the demonstrated responsibility for the community, involve immediate consequences.

The public has heightened expectations of companies in the area of corporate responsibility, but that there is a growing “cynicism gap” in how companies are actually perceived to be performing.



2. Sells’ and share market growth. These aspects are relevant especially in

case of the Cause related Marketing Campaigns, but also in case of the long term pledge. For example, in 2000, the CSR activities had a 25% contribution to the positive impact on the British Telecom customers’ satisfaction .



3. Competitors differentiating. In our days, the consumers became more

informed, more able to express their opinions and more preoccupied regarding the environment, health and social problems and the markets became more and more crowded.



4. Brand loyalty getting. These pushed brands to find new methods

in order to built emotional links with the public. Responding to the emotional needs, the CSR programmes are good opportunities to communicate to the public the brand’s values.



5. The valuable employees’ attractiveness and keeping.

The brand attachment can be obtained not only by wages, but by the brands’ values. The employees feel the need to be proud of them company. For example, for 81% from the Americans, a company’s responsibility is an important decision factor in job choosing


What is Corporate societal marketing?

Corporate societal marketing is defined to encompass marketing initiatives that

have at least one non-economic objective related to social welfare and use the resources of the company and/

or one of its partners


Corporate societal marketing concept

It holds that the organization's task is to determine the needs, wants, and

interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way

that preserves or enhances the consumer's and the society's well-being.


Corporate societal marketing concept

The societal marketing concept calls upon marketers to build social and

ethical considerations into their marketing practices. They must balance the often conflicting criteria of company profits, consumer want satisfaction, and

public interest.


Corporate societal marketing experiences

One of the examples is The Body Shop, started by Anita Roddick in 1976.

This organization has experienced phenomenal sales growth by actively promoting its products as all-natural,

environmentally friendly, and non-animal-tested, and its business practices

as socially concerned


What is cause-related marketing?

Cause related marketing (CRM) is defined as the process of formulating and implementing marketing activities

that are characterized by contributing a specific amount to a designated non-

profit effort that, in turn, causes customers to engage in revenue-

providing exchanges


Cause marketing can

• Build brand awareness • Enhance brand image • Establish brand

credibility • Evoke brand feelings • Create a sense of brand

community • Elicit brand

engagement


What is social marketing?

Social marketing is the systematic application of marketing alongside other

concepts and techniques to achieve specific goals for a social good, often by non-profit or government organizations.


Examples. The Body Shop In large part, The Body Shop's success has been due to its Founder, Anita Roddick. Her focus on ethical consumption and social issues was enormous and that resulted in clearly differentiated toiletries and cosmetics. Such vision and commitment to corporate values have formed the essential core of The Body Shop brand.


Examples. The Body Shop The Community Trade program is aimed at small producer communities around the world who supply it with accessories and natural ingredients. Fair prices help producers to take control over their own lives and allow money to go back into the community to supply basic needs such as water, health and education.


Key features of corporate societal marketing

Customer orientation

Behavioural goals

Intervention Mix/marketing Mix

Audience segmentation

Exchange

Competition


Key features of corporate societal marketing

Intervention Mix/marketing Mix

Socially responsible business module implementation starts with the business

strategy improvement and a right product/service mix development!


Expanded Marketing Mix for Services


Services Require An Expanded Marketing Mix

• The “8Ps” of services marketing are needed to create viable strategies for meeting customer needs profitably in a competitive marketplace


The 8Ps of Services Marketing

• Product Elements • Place and Time • Price and Other User

Outlays • Promotion and Education • Process • Physical Environment • People • Productivity and Quality Working in Unison: The

8Ps of Services Marketing


The 8Ps of Services Marketing: (1) Product Elements

• Embrace all aspects of service performance that create value

• Core product responds to customer’s primary need

• Array of supplementary service elements • Help customer use core product effectively • Add value through useful enhancements

• Planning marketing mix begins with creating a service concept that: • Will offer value to target customers • Satisfy their needs better than competing alternatives


The 8Ps of Services Marketing: (2) Place and Time

• Delivery decisions: Where, When, How

• Geographic locations served

• Service schedules

• Physical channels

• Electronic channels

• Customer control and convenience

• Channel partners/intermediaries


The 8Ps of Services Marketing: (3) Price and Other User Outlays

• Marketers must recognize that customer outlays involve more than price paid to seller

• Traditional pricing tasks: • Selling price, discounts, premiums • Margins for intermediaries (if any) • Credit terms

• Identify and minimize other costs incurred by users: • Additional monetary costs associated with service usage

(e.g., travel to service location, parking, phone, babysitting, etc.)

• Time expenditures, especially waiting • Unwanted mental and physical effort • Negative sensory experiences


The 8Ps of Services Marketing: (4) Promotion and Education

• Informing, educating, persuading, reminding customers • Marketing communication tools

• Media elements (print, broadcast, outdoor, retail, the Internet, etc.)

• Personal selling, customer service • Sales promotion • Publicity/PR

• Imagery and recognition • Branding • Corporate design

• Content • Information, advice • Persuasive messages • Customer education/training


The 8Ps of Services Marketing: (5) Process

• How firm does things may be as important as what it does

• Customers often actively involved in processes, especially when acting as co-producers of service

• Process involves choices of method and sequence in service creation and delivery • Design of activity flows • Number and sequence of actions for customers • Nature of customer involvement • Role of contact personnel • Role of technology, degree of automation

• Badly designed processes waste time, create poor experiences, and disappoint customers

Slide 12.52

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

The 8Ps of Services Marketing: (6) Physical Environment

• Design servicescape and provide tangible evidence of service performances

• Create and maintain physical appearances • Buildings/landscaping • Interior design/furnishings • Vehicles/equipment • Staff grooming/clothing • Sounds and smells • Other tangibles

• Manage physical cues carefully— can have profound impact on customer impressions


The 8Ps of Services Marketing: (7) People

• Interactions between customers and contact personnel strongly influence customer perceptions of service quality

• The right customer-contact employees performing tasks well • Job design • Recruiting • Training • Motivation

• The right customers for firm’s mission • Contribute positively to experience of other customers • Possess—or can be trained to have— needed skills (co-

production) • Can shape customer roles and manage customer behavior


The 8Ps of Services Marketing: (8) Productivity and Quality

• Productivity and quality must work hand in hand • Improving productivity key to reducing costs • Improving and maintaining quality essential for building

customer satisfaction and loyalty • Ideally, strategies should be sought to improve both

productivity and quality simultaneously—technology often the key • Technology-based innovations have potential to create

high payoffs • But, must be user friendly and deliver valued customer

benefits


What are marketing communications?

Marketing communications are the means by which firms attempt to

inform, persuade and remind consumers, directly or indirectly, about

the products and brands they sell.


Modes of marketing communications

• Advertising • Sales promotion • Events and

experiences • Public relations

and publicity

• Direct marketing • Interactive marketing • Word-of-mouth

marketing • Personal selling


Common advertising communication platforms

• Print and broadcast ads • Packaging – outer and

inserts • Motion pictures • Brochures and booklets • Posters and leaflets • Directories

• Reprints of ads • Billboards • Display signs • Point-of-purchase

displays • Audiovisual material • Symbols and logos • Videotapes


Sales promotion communication platforms

• Contests, games, sweepstakes and lotteries

• Premiums and gifts • Sampling • Fairs and trade shows • Exhibits • Demonstrations

• Coupons • Rebates • Low-interest financing • Entertainment • Trade-in allowances • Continuity programmes • Tie-ins


Events and experiences platforms

• Sports • Entertainment • Festivals • Arts • Causes • Factory tours • Company museums • Street activities


Public relation and publicity communication platforms

• Press kits • Speeches • Seminars • Annual reports • Charitable donations

• Publications • Community relations • Lobbying • Identity media • Company magazine


Direct and interactive communication platforms

• Catalogues • Mailings • Telemarketing • Electronic shopping • Blogs

• TV shopping • Fax • Email • Voicemail • Websites


Other common communication platforms

Word-of-mouth marketing • Person to person • Chatrooms • Blogs

Personal selling • Sales presentations • Sales meetings • Incentive programmes • Samples • Fairs and trade shows


IMC builds brands

Integrating marketing communications to build brand equity


Figure 19.2 Elements in the communication process


Field of experience

Receiver’s field

Sender’s field


Response hierarchy models Sources: aE. K. Strong (1925) The Psychology of Selling, New York: McGraw-Hill, p. 9; bR. J. Lavidge and G. A. Steiner, (1961) A model for predictive measurements of advertising effectiveness, Journal of Marketing, October, 61; cE. M. Rogers (1962) Diffusion of Innovation, New York: Free Press, pp. 79-86; dVarious sources


An ideal ad campaign

• The right consumer is exposed to the message at the right time and place

• The ad causes consumer to pay attention • The ad reflects consumer’s level of

understanding and behaviors with product • The ad correctly positions brand in terms of

points-of-difference and points-of-parity • The ad motivates consumers to consider

purchase of the brand • The ad creates strong brand associations


Creative brief

• Positioning statement

• Key message • Target market • Objectives • Key brand benefits

• Brand promise • Evidence of promise • Media • Background • Creative

considerations


Dita Danosa Program Director Creative Industries Management email: [email protected]

Thank you for your attention!

Documents

Swiss Finance Week Green marketing and Corporate societal ... · 4. Sustainable Packaging – replacing your existing packaging with “green” packaging materials such as biodegradable